In October 2014,Jonathon Remodeling Co

question 47

Multiple Choice

In October 2014,Jonathon Remodeling Co.,an accrual-method taxpayer,remodels and renovates an office building for Dale and bills him $30,000.Dale signs a note for the debt.Dale keeps delaying payment and files bankruptcy in 2015.Creditors are informed that no assets are available for payment. Jonathon Remodeling Co.will report

• A)$0 income in both years.
• B)$30,000 income in 2014 and a bad debt deduction of $30,000 in 2015.
• C)$30,000 income in 2014 and a STCL of $30,000 in 2015 limited to $3,000 after netting.
• D)$30,000 income in 2014 and then must amend last year's return to show $0 income when advised of the bankruptcy.

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Definitions:

Organizational Leaders

Individuals who have the responsibility and authority to guide and influence the direction, vision, and performance of an organization.

Deal With Crises

The approach and measures taken to manage, cope with, or resolve emergency situations that threaten an organization or community.

Functions Of Culture

Entails the shared beliefs, values, norms, and practices that guide and shape the behavior of people within a group or organization.

Organization

A structured group of people working together to achieve common goals through a division of labor and a hierarchy of authority.